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jayson took out a loan for $60,000 to pay for her child's education. the loan would be repaid at the end of eight years in one payment with an interest of 6%. the total amount jayson has to pay back at the end of the loan is:

User Nalani
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Final answer:

Jayson will have to pay $88,800 at the end of 8 years for the $60,000 loan with a 6% interest rate, after accumulating $28,800 in interest.

Step-by-step explanation:

Jayson took out a loan for $60,000 at an interest rate of 6% which will be repaid at the end of eight years in one payment. To calculate the total amount Jayson has to pay back at the end of the loan, we use the formula for simple interest: Interest = Principal × Rate × Time. In this case, the principal is $60,000, the rate is 6% or 0.06, and the time is 8 years.

The interest Jayson will accumulate over the 8 years would be:

Interest = $60,000 × 0.06 × 8 = $28,800.

To find out the total repayment amount, we add the interest to the principal amount:

Total Repayment = Principal + Interest = $60,000 + $28,800 = $88,800.

Therefore, Jayson will have to pay $88,800 at the end of 8 years.

User Adeelmahmood
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